A conference attended by 40 "students" and 20 "teachers" was held to explore the state of the art in computer-assisted instruction (CAI). The school was held in a remote Italian resort, but direct connections with computers in Italy and the United States were made to provide opportunities for demonstrations of existing systems. The papers presented fell into three broad categories. The first dealt with issues of CAI usage in different educational contexts and in various disciplinary areas. The second group considered technical issues in the development, use, and evaluation of CAI. Included were papers on instructional software, learner controlled CAI, mathematical models of learning and performance, and the use of CAI for dispersed populations. The final group of papers described use of CAI at five institutions including Coast Community Colleges District in California, Bari University in Italy, Stanford University, University of California at Irvine, and the University of Michigan. (DGC)